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TMI Blog2019 (3) TMI 1900X X X X Extracts X X X X X X X X Extracts X X X X ..... nce both the appeals are of the same assessee and the issues are common, they were heard together and disposed of by a common order. 2. For the sake of convenience, we shall take up the appeal filed by the assessee viz. ITA No.552/Bang/2014 and the facts narrated therein. The assessee has raised the following grounds of appeal: 1. "The Order of the learned Commissioner of Incometax, Bangalore-I, Bangalore passed under section 263 of the Act in so far as it is against the Appellant is opposed to law; equity, weight of evidence, probabilities and the facts and circumstances in the Appellant's case. 2. The Commissioner of income Tax is not justified in low in exercising revisionary power's as the entire proceedings are witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT had sought to revise the assessment order is a conscious view adopted by the learned assessing officer, which is not shown to be erroneous and consequently, the jurisdiction under section 263 of the Act stands ousted and accordingly the impugned order passed deserves to be cancelled. 9. The Appellant craves leave to add, alter, delete or substitute any of the grounds urged above. 10. In the view of the above and other grounds that may be urged at the time of the hearing of the appeal, the Appellant prays that the appeal may be allowed in the interest of justice and equity." 3. Brief facts of the case are that the assessee is a cooperative society engaged in the business of banking and filed Return of income on 30/09/2008 with tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 92,360/- and provision for election/general body expenditure of Rs. 19,06,834/-. The CIT, considering the assessment records found that only actual expenditure incurred by the assessee has to be allowed and the provision made towards ascertained liability is allowable as deduction whereas provision for unascertained liability is not allowable. The AO has not examined the above provisions, the system of accounting as per Form 3CA and 3CD report filed in the scrutiny proceedings being mercantile except to the extent of interest on loans and advances is accounted on receipt basis. 6. The CIT is of the opinion that the assessee is following mixed system of accounting and dealt with Audit report. Whereas the assessee, in pursuance to the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest of revenue confirms the twin conditions required for revision proceedings and set aside the order of assessment u/s 143(3) dated 29/12/2010 and directed the AO to do fresh assessment after conducting enquiries and also provide reasonable opportunity of hearing to the assessee and accordingly passed the order u/s on 28/03/2013. 8. Aggrieved by the order, the assessee has filed the appeal before the Tribunal. Before us, the learned AR argued that the order passed by the CIT has erred in passing revision order irrespective of the fact that the assessee is a co-operative society and has been complying with the income-tax guidelines and rules and there is no violation in respect of any section and are covered under the Karn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial year and subsequently has been paid. When a query was raised to the learned AR whether these aspects are verified by the AO, the learned AR submitted that the AO has complied and verified and called for information but the submissions of learned AR are not supported with documentary evidence. We found that in the revision proceedings the assessee has not produced any proof in support of its claim and the method of accounting. Further, in respect of second issue of provision for election/general body expenditure even before the Tribunal, the learned AR could not substantiate with evidence in respect of the claim. Therefore, we, considering the facts and circumstances and the financial statements, are of the substantive opinion that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring provided to the assessee. Therefore, we, considering the principles of natural justice and the facts of the case and the assessee being a co-operative society, restore this disputed issue to the file of the AO to meet the ends of justice and AO shall call for the details and examine the claims. Further the assessee should co-operate in submitting information as expeditiously and the AO should provide adequate opportunity of hearing to assessee and we set aside the order of the CIT(A) and restore to AO and the grounds of appeal of the assessee are allowed for statistical purposes. 12. In the result, the assessee's appeal in ITA No.552/Bang/2014 is dismissed and ITA No.2000/Bang/2017 is allowed for statistical purposes. Order pron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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